Recognise Bank has successfully completed a significant £1.96 million commercial property loan intended to support both the refinancing and ongoing development of a purpose-built student accommodation (PBSA) project located in Aberdeen. This financing arrangement is a testament to the bank’s active participation in the growing UK PBSA market, which continues to attract substantial investment.
Refinancing and Development Details
The loan facility was arranged for a seasoned property investor and developer with a robust track record in the PBSA sector. The borrower had acquired a former office building situated in the heart of Aberdeen city centre and subsequently secured planning permission to convert this property into 52 self-contained student studios, catering to the increasing demand from students in the area.
Loan Structure and Considerations
James Williams of Portway Finance played a pivotal role in introducing the nine-month loan facility, which was completed at a 70% loan-to-value (LTV) ratio. This arrangement enabled the borrower to refinance an existing lender while adhering to a tight deadline. Although the structure of the loan was relatively straightforward, several considerations were taken into account, including the commercial nature of the asset and the LTV positioned at the higher end of the bank’s lending parameters. Factors such as the quality of the asset, the strength of the planning position, and the borrower’s history of successfully delivering similar schemes provided the necessary support for this transaction.
Expertise and Timeliness
Richard Winston, Lending Manager at Recognise Bank, commented on the transaction, stating, “This case displayed a high level of experience across all parties. The borrower had a clear grasp of both the asset and the local market, and James and the team at Portway Finance set out the requirements clearly from the outset, allowing the transaction to progress in a controlled and structured way.”
Timing was crucial in this scenario. To meet the refinancing deadline, the bank accepted a re-type of a recent valuation report and employed title indemnity insurance, thus facilitating the completion of the transaction within the stipulated timeframe. Scottish solicitors were engaged, underscoring the bank’s experience in lending across the border. The deal was managed by Richard Winston alongside Lending Operations Manager Sasha Holland.
Continuation of Growth
This loan builds upon the momentum established earlier in January when Recognise Bank announced a £556,000 residential bridging loan aimed at supporting the renovation of an investment property in central London. This previous deal also served to release capital for the borrowers’ trading business, indicating the lender’s strategy of offering flexible financial solutions tailored to meet varying client needs.
James Williams, Finance Broker at Portway Finance, noted, “The timetable on this deal was tight, and the location and the LTV meant it needed a lender with the right appetite and experience. The team at Recognise Bank was clear, responsive and pragmatic throughout, which made the difference in getting this deal over the line.”
Recognise Bank continues to position itself as a provider of flexible bridging finance for both residential and commercial securities, contributing significantly to the PBSA landscape in the UK.